Bill Text: MI HB4427 | 2015-2016 | 98th Legislature | Engrossed
Bill Title: Insurance; no-fault; rates based on certain traffic violations; modify. Amends sec. 2103 of 1956 PA 218 (MCL 500.2103).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2016-12-31 - Assigned Pa 449'16 With Immediate Effect [HB4427 Detail]
Download: Michigan-2015-HB4427-Engrossed.html
HB-4427, As Passed Senate, December 7, 2016
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 4427
A bill to amend 1956 PA 218, entitled
"The insurance code of 1956,"
by amending section 2103 (MCL 500.2103), as amended by 2002 PA 492.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2103. (1) "Eligible person", for automobile insurance,
means a person who is an owner or registrant of an automobile
registered or to be registered in this state or who holds a valid
Michigan
license to operate a motor vehicle issued by this state,
but does not include any of the following:
(a)
A person who is not required to maintain security pursuant
to
under section 3101, unless the person intends to reside in
this
state for 30 days or more and makes a written statement of that
intention
on a form approved by the commissioner.director.
(b) A person whose license to operate a vehicle is under
suspension or revocation.
(c) A person who has been convicted within the immediately
preceding 5-year period of fraud or intent to defraud involving an
insurance claim or an application for insurance; or an individual
who has been successfully denied, within the immediately preceding
5-year period, payment by an insurer of a claim in excess of
$1,000.00 under an automobile insurance policy, if there is
evidence of fraud or intent to defraud involving an insurance claim
or application.
(d) A person who, during the immediately preceding 3-year
period, has been convicted under, or who has been subject to an
order of disposition of the family division of circuit court for a
violation of, any of the following:
(i) Section 324 or 325 of the Michigan penal code,
1931 PA
328,
MCL 750.324 and 750.325; section 1 of former 1931 PA 214 or
section
626c of the Michigan vehicle code, 1949 PA 300, MCL
257.626c;
Section 601d of the Michigan
vehicle code, 1949 PA 300,
MCL
257.601d, or under any other law
of this state the violation of
which constitutes a felony resulting from the operation of a motor
vehicle.
(ii) Section 625 of the Michigan vehicle code, 1949 PA 300,
MCL 257.625.
(iii) Section 617, 617a, 618, or 619 of the Michigan vehicle
code, 1949 PA 300, MCL 257.617, 257.617a, 257.618, and 257.619.
(iv) Section 626 of the Michigan vehicle code, 1949 PA 300,
MCL
257.626; or for a similar violation under the laws of any other
state
or a municipality within in
or without outside of this state.
(e) A person whose vehicle insured or to be insured under the
policy fails to meet the motor vehicle safety requirements of
sections 683 to 711 of the Michigan vehicle code, 1949 PA 300, MCL
257.683 to 257.711.
(f) A person whose policy of automobile insurance has been
canceled because of nonpayment of premium or financed premium
within the immediately preceding 2-year period, unless the premium
due on a policy for which application has been made is paid in full
before issuance or renewal of the policy.
(g) A person who fails to obtain or maintain membership in a
club, group, or organization, if membership is a uniform
requirement of the insurer as a condition of providing insurance,
and if the dues, charges, or other conditions for membership are
applied uniformly throughout this state, are not expressed as a
percentage of premium, and do not vary with respect to the rating
classification of the member except for the purpose of offering a
membership fee to family units. Membership fees may vary in
accordance with the amount or type of coverage if the purchase of
additional coverage, either as to type or amount, is not a
condition for reduction of dues or fees.
(h) A person whose driving record for the 3-year period
immediately preceding application for or renewal of a policy, has,
pursuant
to under section 2119a, an accumulation of more than 6
insurance eligibility points.
(2) "Eligible person", for home insurance, means a person who
is the owner-occupant or tenant of a dwelling of any of the
following types: a house, a condominium unit, a cooperative unit, a
room, or an apartment; or a person who is the owner-occupant of a
multiple unit dwelling of not more than 4 residential units.
Eligible person does not include any of the following:
(a) A person who has been convicted, in the immediately
preceding 5-year period, of 1 or more of the following:
(i) Arson, or conspiracy to commit arson.
(ii) A crime under sections 72 to 77, 112, 211a, 377a, 377b,
or 380 of the Michigan penal code, 1931 PA 328, MCL 750.72 to
750.77, 750.112, 750.211a, 750.377a, 750.377b, and 750.380.
(iii) A crime under section 92, 151, 157b, or 218 of the
Michigan penal code, 1931 PA 328, MCL 750.92, 750.151, 750.157b,
and
750.218, based upon on a crime described in subparagraph (ii)
committed by or on behalf of the person.
(b) A person who has been successfully denied, within the
immediately preceding 5-year period, payment by an insurer of a
claim under a home insurance policy based on evidence of arson,
conspiracy to commit arson, fraud, or conspiracy to commit fraud,
committed by or on behalf of the person.
(c) A person who insures or seeks to insure a dwelling that is
being used for an illegal or demonstrably hazardous purpose.
(d) A person who refuses to purchase an amount of insurance
equal to at least 80% of the replacement cost of the property
insured or to be insured under a replacement cost policy.
(e) A person who refuses to purchase an amount of insurance
equal to at least 100% of the market value of the property insured
or to be insured under a repair cost policy.
(f) A person who refuses to purchase an amount of insurance
equal to at least 100% of the actual cash value of the property
insured or to be insured under a tenant or renter's home insurance
policy.
(g) A person whose policy of home insurance has been canceled
because of nonpayment of premium within the immediately preceding
2-year period, unless the premium due on the policy is paid in full
before issuance or renewal of the policy.
(h) A person who insures or seeks to insure a dwelling, if the
insured value is not any of the following:
(i) For a repair cost policy, at least $15,000.00.
(ii) For a replacement policy, at least $35,000.00 or another
amount
which the commissioner established
by the director. The
director may establish an amount under this subparagraph biennially
on
and after January 1, 1983, pursuant to rules by a rule
promulgated
by the commissioner under the administrative procedures
act
of 1969, 1969 PA 306, MCL 24.201 to 24.328, and based upon on
changes in applicable construction cost indices.
(i) A person who insures or seeks to insure a dwelling that
has physical conditions that clearly present an extreme likelihood
of a significant loss under a home insurance policy.
(j) A person whose real property taxes with respect to the
dwelling insured or to be insured have been and are delinquent for
2 or more years at the time of renewal of, or application for, home
insurance.
(k) A person who has failed to procure or maintain membership
in a club, group, or organization, if membership is a uniform
requirement of the insurer, and if the dues, charges, or other
conditions for membership are applied uniformly throughout this
state, are not expressed as a percentage of premium, and do not
vary with respect to the rating classification of the member except
for the purpose of offering a membership fee to family units.
Membership fees may vary in accordance with the amount or type of
coverage if the purchase of additional coverage, either as to type
or amount, is not a condition for reduction of dues or fees.
(3) "Home insurance" means any of the following, but does not
include insurance intended to insure commercial, industrial,
professional, or business property, obligations, or liabilities:
(a) Fire insurance for an insured's dwelling of a type
described in subsection (2).
(b) If contained in or indorsed to a fire insurance policy
providing insurance for the insured's residence, other insurance
intended primarily to insure nonbusiness property, obligations, and
liabilities.
(c) Other insurance coverages for an insured's residence as
prescribed
by rule promulgated by the commissioner pursuant to
director under the administrative procedures act of 1969, 1969 PA
306,
MCL 24.201 to 24.328. A The
director shall transmit a rule
proposed
for promulgation by the commissioner pursuant to under
this
section shall be transmitted in advance to each member of the
standing
committee committees in the house of representatives and
in
the senate that has have jurisdiction
over insurance.
(4) "Insurance eligibility points" means all of the following:
(a) Points calculated, according to the following schedule,
for convictions, determinations of responsibility for civil
infractions, or findings of responsibility in probate court:
(i) For a violation of any lawful speed limit by more than 15
miles per hour, or careless driving, 4 points.
(ii) For a violation of any lawful speed limit by more than 10
miles
per hour , but
less than 16 miles per hour, 3 points.
(iii) For a violation of any lawful speed limit by 10
more
than
5 miles per hour but less than 11 miles
per hour, or less, 2
points.
(iv) For a violation of any speed limit by 15 more than 5
miles
per hour but less than 16 miles per
hour or less on a roadway
that had a lawfully posted maximum speed of 70 miles per hour or
greater as of January 1, 1974, 2 points.
(v) For a violation of a speed limit by less than 6 miles per
hour, 1 point.
(vi) (v) For
all other moving violations pertaining to the
operation of motor vehicles, 2 points.
(b) Points calculated, according to the following schedule,
for
determinations that the person was substantially at-fault: ,
as
defined
in section 2104(4):
(i) For the first substantially at-fault accident, 3 points.
(ii) For the second and each subsequent substantially at-fault
accident, 4 points.
(5) "Insurer" means an insurer authorized to transact in this
state the kind or combination of kinds of insurance constituting
automobile
insurance or home insurance. , as defined in this
chapter.
Enacting section 1. This amendatory act takes effect 1 year
after the date it is enacted into law.
